A Commission staff working document published on 24 June 2026 presents the impact assessment for a proposed recast of the Directive on administrative cooperation in taxation (DAC), aiming to simplify reporting rules and reduce administrative burdens for businesses and tax administrations while maintaining the fight against tax fraud, evasion and avoidance.
The recast addresses problems identified in the 2025 evaluation: frequent amendments since 2011 have made the DAC complex and less user-friendly; reporting obligations under DAC6 need simplification to eliminate inefficient practices; challenges remain in automatic matching of information and taxpayer identification, increasing burdens on tax administrations. Five preferred measures are outlined: ensuring DAC6 reporting obligations remain proportionate and effective; amending the reporting threshold for sale of goods under DAC7; streamlining notification obligations for MNE groups under DAC4 and DAC9; improving verification of Taxpayer Identification Numbers (TINs); and improving completeness of information reported under DAC1. The initiative aligns with the 2025 and 2026 Commission Work Programmes and Council Conclusions of 20 March 2025 calling for simplification in direct taxation. Burden-reduction targets of at least 25% for all companies and at least 35% for SMEs apply to the full range of administrative costs.
The impact assessment identifies several trade-offs. For businesses, especially SMEs, the simplification measures are expected to reduce compliance costs significantly, but some firms may face initial adaptation costs to new reporting thresholds and streamlined procedures. Tax administrations will benefit from improved data quality and reduced manual verification efforts, but may need to invest in IT systems to handle the new TIN verification mechanisms. The fight against tax evasion remains a priority, but the recast aims to ensure that reporting obligations are proportionate and do not impose excessive burdens on compliant taxpayers. The proposal is expected to proceed to the European Parliament for consultation before formal adoption by the Council.